Aerospace market in the Philippines

The Philippines’ aerospace sector is emerging with significant contribution to the country’s economy. This growth is driven by:

  • business and trade
  • defence and security
  • tourism
  • healthcare
  • entertainment and sports
  • resource-based industries

Canada is well positioned in the Philippines’ aerospace market, with growing local representation and the presence of several major Canadian companies.

Key opportunities for Canadian aerospace companies in the Philippines

  • Government and civil space
  • Aircraft and aviation goods and services
  • Advanced air mobility and support systems
  • Aerospace-related testing and training solutions

Notable challenges for Canadian Aerospace companies in the Philippines

  • Global competition
  • Economic and regulatory challenges
  • Talent retention and technology adoption

Industry highlights

CAD 28.5 billion came from the aviation sector in 2024 (4.6% of GDP).

CAD 5.4 billion projected market value for aerospace parts manufacturing in Indonesia by 2030.

1.9 million jobs are supported by the country’s aerospace industry.

Over 70 aerospace companies operate in Indonesia, including firms specializing in maintenance, repair, and overhaul (MRO) services.

12.1% annual growth forecast for Indonesia’s aerospace parts manufacturing market from 2023 to 2030.

Philippines business landscape

The Philippines’ aerospace sector is steadily growing, driven by rising demand in commercial aviation and aerospace services. Key strengths include aerospace manufacturing and MRO capabilities that serve both domestic and international markets. This growth is supported by a strong ecosystem of key players in the Philippines, including:

  • government agencies
  • private companies
  • training institutions
  • industry groups like the Aerospace Industries Association of the Philippines

Government initiatives such as the military modernization efforts, the Self-Reliant Defense Posture (SRDP) program, and the Strategic Investment Priority Plan (SIPP) are boosting investment and local industry development. The Civil Aviation Authority of the Philippines (CAAP) oversees regulations to make sure they meet global standards. While the Philippine Space Agency (PhilSA) advances the country’s space capabilities.

Summary

The Philippines’ growing aerospace sector is an attractive market for Canadian businesses. With its strategic location in Southeast Asia and a rapidly expanding aviation sector, the Philippines offers strong opportunities for Canadian companies involved in:

  • maintenance, repair, and overhaul (MRO)
  • aerospace technologies and capabilities
  • parts manufacturing
  • training and talent development

These opportunities are driven by:

  • growing air passenger traffic
  • increasing cargo demand
  • supportive investment policies
  • civil and government aviation modernization initiatives

Contact us

For more information on Aerospace in the Philippine market, please contact Trade Commissioner for aerospace, defence, and security, Patricia De Mesa (patricia.demesa@international.gc.ca).

Additional Information

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